Bitcoin Fell Below $19,000

Bitcoin Fell Below $19,000

Bitcoin Fell Below $19,000

On Wednesday, September 7, bitcoin quotes dropped to $18,500 for the first time since mid-July. At the time of writing, the cryptocurrency is trading near 18,815. According to data from CoinGecko, Bitcoin has fallen by 5.2% over the past 24 hours.

There are no exact reasons for this yet, but here is what could supposedly affect the sharp drop in bitcoin.

Fed speech?

On September 8, the speech of the head of the Fed will take place. Jerome Powell’s last speech on August 26 had a negative impact on the bitcoin price. The head of the Fed then announced the need to keep interest rates high to fight inflation. On August 27, Bitcoin fixed a mark near $19,900. This could be one of the reasons, why bitcoin is showing a dip as speculation about a more hawkish monetary policy intensifies.

Blame Ethereum?

Another reason for the fall of bitcoin is the upcoming event “Merger” of the Ethereum network. Yesterday, September 6, Ethereum started updating Bellatrix, after which the rate of the second cryptocurrency at the moment approached $1,700, after which, after 19:00 Moscow time, there was a 9% drawdown. At this time, the bitcoin rate also began to decline. 

Departure of Russian brokers from the American market?

The Central Bank sent an order to brokers prohibiting trading in investments from unfriendly countries from October 1, 2022. The ban applies if the share of such securities in the investor’s portfolio exceeds 15%, then this percentage will gradually decrease to 10% from November 1 and 5% from December 1. The share of investors from Russia in the US market is large and it is expected that this will greatly affect the securities and crypto markets. 

Meanwhile, Glassnode is forecasting Bitcoin to fall to $17,000. 

Share this post

Leave a Reply

Your email address will not be published.